Income tax returns and allowances for expats

The M-form

Living and working in the Netherlands for the first Year with or without the 30% ruling.

For the first year we use an “M-form” to do the income tax return. After this year we use the normal form for the tax return. If your employer can use the 30% ruling then you are allowed to obtain for a partial foreign taxable ruling in the income tax return. This means income for Box 2 and 3 in the Netherlands can be exempt, so not taxable.

Fiscal partner

If you have a relationship and your partner lives in the Netherlands too then there is a possibility to become fiscal partner for tax purposes. Your husband/wife (partner) receives a general allowance even if they do not work in the Netherlands.

Allowances (toeslagen) in the Netherlands

The allowances are not part of the income tax return and can be requested separately. The allowances (based on your income in a year) will be paid out monthly as a prepayment. After the year’s tax return a final allowance is calculated. The outcome results in either a refund, an extra allowance or nothing. You will receive a final document for this.

The basis for an allowance is the “Verzamelinkomen” of both you and your fiscal partner. There are 4 allowances: